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Trading update

January 16, 2013

Forbidden Technologies plc (AIM:FBT), the AIM quoted owner and developer of the market leading Cloud video platform, FORscene, announces that the Company enjoyed a strong performance in 2012, with revenue growth expected to exceed analyst's forecasts of around 50% by a respectable margin.

FORscenes reputation for reliability, speed and reduced cost have been the major drivers of growth in professional markets, the source of almost all Forbiddens revenue.

Growth in Forbidden's UK broadcast post sales has continued this year. Forbiddens successful strategy of selling through third parties, particularly Post Production Houses, has led to an increasing rate of profitable hardware sales. Each piece of hardware helps drives a long term high margin annuity licence revenue stream.

Sales of FORscene in the Broadcast Post Production sector are starting to benefit from networking effects, as the product is becoming a standard in its area. In a tough economic period for broadcast, Forbiddens revenue growth in this area in 2012 is expected to exceed 50%.

FORscene is an excellent tool for editing live video content. Forbidden previously declared its intention to enter the sports market, and the successful supply of the FORscene service to YouTube and NBC for editing web video for the Olympics has proved to be a great way to achieve high visibility. Editors in the US and UK made thousands of videos amounting to thousands of hours of content. NBC used FORscene to edit video for web, mobile and some broadcast delivery. Outside NBC, the web video for over 60 countries was edited in FORscene. Overall, Forbiddens revenue from this News and Sport sector is expected to grow by over 80% in the year.

The reputational impact of the Olympics has led to partnerships developing with major broadcast suppliers for both News and Sport with the potential for significant licence annuity sales in both areas. We will announce details of these partnerships as firm commitments are reached.

In addition, the potential for sales through Systems Integrators (SIs) has strengthened with the developing relationship with Atos in South Africa. SIs contract to provide their own FORscene Cloud Servers, opening up the prospect of third party sales of FORscene to large international organisations. The directors believe that the increasing acceptance of cloud video globally will help spark this area into action.

The news from the Consumer Electronics Show in Las Vegas this year confirms what we have long believed, namely that there is major consumer growth in smartphones and tablets. This year is particularly interesting, with the dramatic advances in processors confirmed by several announcements by major manufacturers.

Forbidden has been developing an Android app version of its Clesh (consumer/prosumer) cloud video editor. Sales, although small in comparison to professional sales, inform developments in this area. Advances in screen resolutions, network speeds and processors are all turning what two years ago was more of a technical demonstration into a major force for both professional and consumer markets. Clesh sales have grown steadily over the last year.

Forbidden has used the current app somewhat as a technological demonstrator. However, its unique architecture is designed to handle vastly higher volumes and Forbidden is positioning Clesh for a much bigger role, in due course.

Operating expenses have continued in line with the interim results 2012, reflecting on-going commitment to investment for growth.

2013 has begun with a strong pipeline and the Board looks forward to continued growth.

Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000. The Company develops and markets a powerful internet video platform, FORscene, which is used by broadcasters, in professional web video, in education and by consumers. FORscene (http://www.forbidden.co.uk/products/forscene/) is one of the worlds most advanced browser-based and mobile applications, operating in The Cloud.